Every exchange needs to show proof of reserves, I don't have much faith that Binance is in much better shape than FTX.
Binance to acquire FTX
411–420 of 790 posts
Re: Binance to acquire FTX
#412Earlier quoted context omitted.
But they're meant to store the customer assets in a cold wallet. They're not meant to invest them in illiquid assets that would need to be liquidated to give people their money. If it's not a contradiction, it's an intentionally misleading statement to avoid admitting they let Alameda Research invest the money when the entities are supposed to be completely separated.
The extremely charitable read is that 1. They have all the funds 2. Many are in cold storage or otherwise inaccessible in short term 3. Their cold storage restore process is so slow they need emergency help to provide liquidity in the meantime Seems more like that they've either embezzled client funds or been hacked/lost some cold storage keys
The normal way to handle this would be insurance or a line of credit, not selling your company to your competitor overnight.
Re: Binance to acquire FTX
#413Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…
Binance continues to amaze. Does anyone even know where it operates out of these days?
There is a pool of capital that pays people working for them onchain. They can also do fiat via local subsidiaries, and local contracts for compliance and litigation.
It's almost like it doesn't matter.
For accountability, it barely matters. For financial products they offer, it also barely matters. Most jurisdictions are too small to say anything and all their customers can circumvent any geo-restriction. They have distinct subsidiaries in major markets like USA.
Re: Binance to acquire FTX
#414Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…
This doesn’t sound like very complicated chess. Sounds like those Hong Kong TV shows I watched when I was 13
Re: Binance to acquire FTX
#415I'm glad a big government supporter such as SBF is out of crypto leadership. Crypto is an anarchist experiment and it should remain that way
> Crypto is an anarchist experiment And, like every anarchist experiment before it, it failed. It continues to draw in new suckers every day, and that is a problem for society. It doesn't matter if you didn't cause the problem. Because you live in that society, you still have to pay the cost to fix it or continue to take the losses from the problem existing. It's the same with slavery, not educating blacks, and then…
To be fair to anarchists, it extremely often failed because of outside forces being violent towards them. Nothing in anarchy is inherently doomed to failure, and is a better demonstration of democracy than anything we have currently. (Because if there's anything an anarchist loves more than voting, it's one more voting round).
Calling cryptocurrencies "anarchist" is walking on the corpse of actual anarchists and taking a big, steaming shit on them. Anarcho-capitalists have nothing to do with anarchy and are just kids whose bedtime reading was, regrettably, Ayn Rand.
Re: Binance to acquire FTX
#416Earlier quoted context omitted.
But their point was: FTX doesn't purport to be a bank
It doesn't purport to be a HUGE PONZI either, but... Just another normal day in crypto land.
I mean, the CEO does literally tell people he's running a Ponzi.
https://www.bloomberg.com/news/articles/2022-04-25/sam-bankm...
Re: Binance to acquire FTX
#417Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…
This doesn’t sound like very complicated chess. Sounds like those Hong Kong TV shows I watched when I was 13
Having lived in Hong Kong and watched some of these old shows, I concur.
Re: Binance to acquire FTX
#418Earlier quoted context omitted.
The reason people don't try to pull their money out all at once is because their deposits are insured, because their bank pays into an insurance pool. Only up to $250k.
https://fortune.com/2022/05/23/record-number-american-househ... That wouldn't be a problem for the majority of Americans
If you go over $250k, you can just open accounts at other banks to keep being insured. Or get your own insurance I suppose.
Re: Binance to acquire FTX
#419Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…
> FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price.
Why would Binance decline this opportunity? If FTX, Binance, and the market knew FTT would just crash, it sounds like a given that Binance should take advantage of the fixed price instead of losing hundreds of millions of dollars "letting the market decide".
Re: Binance to acquire FTX
#420Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…
Binance continues to amaze. Does anyone even know where it operates out of these days?
They have a lot of positions open at their Singapore and Hong Kong... offices?